Reliance Communications Ltd’s dollar bonds due 2020 that defaulted last year slumped to a seven-month low after the Indian mobile operator controlled by billionaire Anil Ambani offered in mid-August to repay holders at a discount to the principal value. The Company has been trying to close a sale of wireless assets to Reliance Jio Infocomm Ltd. that would raise money to help pay creditors. Reliance Communications’ notes have fallen 13 cents on the dollar to 39 cents since the announcement of the offer on 6th August.

 

Holders of the $300 million bonds were given the option of tendering their existing notes or exchanging them for $45 million new zero-coupon notes due 2023 to be issued by unit Global Cloud Xchange Ltd.  For bondholders who choose to tender their securities, Reliance Communications is offering to pay at least 3.5% of the principal for notes validly offered.

 

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